Nuclear Stocks Reach Critical Mass: The Time to Buy Is Now

Key Points

• A series of Executive Orders has the entire nuclear complex moving higher because of reduced red tape and accelerated timelines.
• Small modular reactors, or SMRs, are the standout winners because of size, safety, and scalability.
• Nuclear stocks from Oklo to NuScale and Centrus Energy are up 20% and on track to extend the moves by triple digits.

The U.S. nuclear energy has just reached critical mass. A series of Executive Orders unleashed by the Trump Administration reduced red tape, focusing attention on “advanced nuclear technologies, paving the way for the United States to become a global leader in nuclear technology, fuel, and services.

Due to the many references to size and scalability, advanced nuclear technologies can be translated as small modular reactors, or SMRs. Investors should take away that stocks like NuScale Energy NYSE: SMR and Oklo NYSE: OKLO are uniquely positioned to benefit from these developments, as seen in their stock prices. 

Both stocks gained solid double-digit amounts on the news. Oklo led with a gain that topped out above 25%, followed by a slightly smaller increase in SMR shares. The moves were accompanied by significantly increased volume, about 4.5x the 30-day average for OKLO and 3.5x for SMR, a sign of short-covering and rapidly shifting market sentiment.

The short interest on these stocks was above 15% for OKLO and 20% at the end of April. It is likely much lower now and will likely continue falling in the coming weeks. 

What exactly does the executive order do? First, it establishes advanced nuclear technology as critical for national security. The energy it provides is considered necessary to support not only the nation's AI interests but also its military installations. The order aims to speed up the deployment process for SMR technology by reducing red tape, prioritizing clearances and approvals, and establishing timelines for advancement.

Among them are a three-year deadline to develop a program for building and operating SMRs at U.S. military installations and a 30-month deadline to identify and begin developing SMR sites on Federal lands. 

Oklo Has an Advantage Over NuScale Power

The Executive Orders are good news for Oklo and NuScale, but Oklo increased its advantage over NuScale. 

Not only is it on track to begin commercialized operations of its first reactor years ahead of NuScale, but its fuel sources are now assured. One of Oklo’s technological advantages is the use of HALEU fuel. HALEU or high-assay low-enriched uranium is of higher quality than the traditional, standard low-enriched fuel used today, the fuel used primarily by NuScale reactors.

The critical detail is that the Executive Order directs the Secretary of Energy to release 20 metric tonnes of HALEU into a fuel bank for the private sector. 

Centrus Is a Win for Nuclear Investors

Centrus Energy NYSE: LEU is another benefactor of the Trump orders and central to Oklo’s advantage. The company operates a centrifuge cascade for purifying HALEU fuel and partners with Oklo. The two are working to establish a co-located facility that includes a reactor, fuel-recycling facility, and HALEU cascade.

The goal is to produce, efficiently use, and recycle fuel for Oklo reactors and the nuclear industry. 

The reaction from Centrus Energy analysts has been positive, including numerous initiated ratings in 2025 and an aggressive price target. The consensus in late May assumes a 25% upside in addition to the 20% gain sparked by the orders.

Technically, the 20% target is low because moving to that level will break this stock from a trading range and cross a critical pivot point. In that scenario, the stock could rise by $60 to 100% from the critical target, and the forecasts for OKLO and SMR are more robust.

The technical indications for SMR and OKLO suggest a 200% gain from the critical resistance targets. Those targets are at the all-time highs, the tops of long-term trading ranges, and likely reached by early to mid-summer 2025 if not sooner.

The question is whether these markets will continue to attract new money or if the gains will be capped at resistance. The odds are high that new funds will continue to flood into this market because of the business tailwinds and outlook for revenue and profits.

Oklo, for one, will likely have commercialized operations within the next 24 months, will begin producing significant revenue immediately, and will profit soon after.